(4) A 25 Marks firm's production function is F(K, L) = 2/K+L. Factor prices are r...

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(4) A 25 Marks firm's production function is F(K, L) = 2/K+L. Factor prices are r = 2 and w = 3. (a) Find an Expressions for MPL, MPK, and MRTSLK. (b) What sort of returns to scale does this production function have? (c) Show that the firm's LR total cost function is CLR(9) = 19. (Hint: Find LR Factor Demands first.) (d) Show that when K = 4, CSR(q) :{ 8 = {g - 4 if q 4 if q4 (e) Write out expressions for SR AC and mc. (Be sure to take account of the kink in the expression for CSR.) (4) A 25 Marks firm's production function is F(K, L) = 2/K+L. Factor prices are r = 2 and w = 3. (a) Find an Expressions for MPL, MPK, and MRTSLK. (b) What sort of returns to scale does this production function have? (c) Show that the firm's LR total cost function is CLR(9) = 19. (Hint: Find LR Factor Demands first.) (d) Show that when K = 4, CSR(q) :{ 8 = {g - 4 if q 4 if q4 (e) Write out expressions for SR AC and mc. (Be sure to take account of the kink in the expression for CSR.)

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Lets calculate the expressions for MPL MPK and MRTSLK and then find the firms longrun total cost fun... View the full answer